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How to Buy Bitcoin with PayPal

How to Buy Bitcoin with PayPal

How to Buy Bitcoin with PayPal

The popularization of cryptocurrency trading has made it easier than ever to purchase crypto using a variety of methods. Although using a credit or debit card is still the preferred approach by many traders, the option to buy Bitcoin with PayPal is becoming increasingly common with many top brokers and exchanges.

In this guide, we’ll cover everything you need to know about how to buy Bitcoin with PayPal, including reviewing the top crypto trading platforms and showing you how to invest with low fees today.

How to Buy Bitcoin with PayPal – Quick Steps

Presented below is a quick overview of how to buy Bitcoin with PayPal using our recommended trading platform, eToro: 

  1. Open an account with eToroHead to eToro’s website and click ‘Join Now’. Enter your email address and choose a username and a password.
  2. Verify account: Verify your eToro account by completing the KYC checks and uploading photo ID (e.g. passport) and proof of address (e.g. bank statement).
  3. Deposit: Deposit at least $10 into your trading balance using PayPal as your preferred payment method.
  4. Buy Bitcoin: Type ‘BTC’ into the search bar and click ‘Trade’ when Bitcoin appears. Enter your position size in the order box (minimum $10) and click ‘Open Trade’.

If you are looking for a more detailed walkthrough of the investment process, you can find one at the end of this guide.

Where to Buy Bitcoin with PayPal

If you’re looking to buy Bitcoin with PayPal, your top priority should be finding a reputable trading platform to facilitate your trade. There is an abundance of trading platforms offering this functionality, meaning it can be challenging to narrow down the selection to one that suits your unique needs.

To help streamline this decision-making process, presented below are reviews of four top trading platforms that allow users to buy Bitcoin via PayPal:

1. eToro – Overall Best Trading Platform to Buy Bitcoin Online with PayPal

Our number one pick when it comes to the best crypto exchanges that offer PayPal functionality is eToro. eToro has an excellent reputation within the trading industry, with over 24 million users across 140 different countries. Much of eToro’s outstanding reputation comes from the platform’s high degree of safety, bolstered by regulation from top-tier entities such as the FCA, ASIC, CySEC, FinCEN, and FINRA.

eToro users can invest in Bitcoin and a wide array of altcoins using eToro’s browser-based platform or the dedicated mobile app, available on iOS or Android. In terms of fees, eToro makes sure the amount you pay is entirely transparent, charging a fixed 1% fee when opening or closing a trade, plus the raw spread. eToro had previously utilized a fixed spread approach, so this new pricing structure tends to work out much cheaper for most cryptos.

2. Binance – Respected Crypto Exchange with Huge Asset Selection

binance logoBinance is ideal if you’re looking to buy Bitcoin or any of the best altcoins, as the platform offers an impressive 500+ crypto assets to trade. The selection includes DeFi tokens and crypto-to-crypto trading pairs, which will appeal to experienced crypto traders. Although Binance is primarily used as a cryptocurrency exchange, users can still fund their trading balance using FIAT currency. However, the only way to buy Bitcoin using PayPal is to go through Binance’s P2P trading service, assuming another user offers that option.

Why Buy Bitcoin with PayPal?

When researching how to buy Bitcoin with PayPal, you’ll likely become aware of the various benefits associated with using this approach. This is understandable, given that PayPal now has over 390 million active users worldwide. With that in mind, presented below are five of the main advantages of using PayPal to purchase Bitcoin: 

Speedy Deposits & Withdrawals

One of the main reasons traders opt to use PayPal is the platform’s ability to facilitate deposits and withdrawals quickly. Assuming you have an account with a trading platform that accepts PayPal (e.g. eToro), it’s easy to link your PayPal account to your trading balance and make instant deposits. The entire process is streamlined, usually only taking a few minutes to complete.

If you’re looking to transfer Bitcoin to PayPal, this can usually only be achieved by first closing out your position on the trading platform and then withdrawing the proceeds to your PayPal balance. However, the withdrawal timeframe for PayPal tends to be much quicker than other payment methods. For example, eToro offers PayPal withdrawals within two business days, whilst bank transfers or credit/debit card withdrawals can take up to ten business days.

High Degree of Security

The level of safety that PayPal offers is another reason why this approach is so popular amongst cryptocurrency traders. As detailed on the PayPal website, the platform employs end-to-end encryption to keep your data and transactions secure. This also includes data protection compliance and ‘key pinning’ to protect your confidentiality.

paypal security features

Another great security feature is that PayPal sends out email confirmations after every transaction. This is extremely useful as if a transaction is unrecognized, you will be able to notify PayPal immediately and remedy the situation. Finally, PayPal even has a dedicated security team that monitors payments 24/7 and will alert you if anything suspicious occurs on your account.

User-Friendliness

The process of how to buy Bitcoin with PayPal is incredibly user-friendly and even rivals popular payment methods such as credit or debit cards. PayPal users can fund their PayPal balance via bank transfer, with the funds being safeguarded through PayPal’s extensive security features. Once funded, it’s then simple to connect your PayPal account to a broker or exchange that supports this payment method.

Using eToro as an example, all that’s required is to make a deposit and choose PayPal as your preferred payment method. You’ll then need to link your PayPal account to your eToro account by entering your login details in the portal that appears. After this, you can instantly make your deposit and begin investing in Bitcoin or the best DeFi coins using the funds you just deposited.

Can Use Mobile App

PayPal’s mobile app has a fantastic reputation due to its user-friendliness and great features. The app itself is available through the App Store or Google Play and allows users to send money anywhere in the world using the recipient’s mobile number or email address. This is extremely useful if someone else is sending you money which you will then use to fund your trading account.

paypal mobile app

The PayPal app also allows you to track your transactions in real-time, which is ideal for ensuring no fraudulent activity is occurring on your account. You can even turn on notifications to alert you the second that there is some account activity.

Multi-Currency Support

Finally, one of the best features you’ll encounter when researching how to buy Bitcoin with PayPal is that the platform supports 25 different currencies. This includes widely-used currencies such as GBP, USD, EUR, and AUD, along with lesser-used ones like CAD, DKK, and BRL.

Ultimately, this feature helps you avoid any currency conversion fees charged by trading platforms. For example, eToro will charge a 0.5% conversion fee for non-USD deposits. By using PayPal, you can convert your funds into USD before making the transfer to eToro – thereby making the process much more cost-effective!

Is PayPal a Good Place to Buy Bitcoin?

Following the explosion in popularity of day trading crypto and other investment approaches, PayPal decided to get in on the act and begin offering functionality to invest in digital currencies directly through the PayPal platform. This was initially only available to US-based traders, although it is now offered in the UK. At present, PayPal allows users to buy Bitcoin, Bitcoin Cash, Ethereum, and Litecoin using their account balance.

How to Buy Bitcoin with PayPal

 

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